02/02/2017 World Business Report


02/02/2017

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Well on the way to 2 billion friends - Facebook gets more popular,

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more profitable and more powerful than ever before.

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Plus, driving a Brexit bargain - why Britain's the place to snap up

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Also in the programme: A rare bit of good news for Mexico's car

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We start with Facebook - because despite predictions

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of a slowdown, the world's biggest social network keeps getting more

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popular, more profitable and more powerful.

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Late on Wednesday it reported quarterly numbers that were much

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They round off another year of rapid growth that has seen it become one

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of the biggest advertising businesses on earth.

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Its massive reach has also of course raised concerns about the amount

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of influence it can have and the reliability of information

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So let's give you an idea of how big Facebook now is.

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By the end of last year, over 1.86 billion people

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around the world were logging on at least once a month,

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1.25 billion of those log on every single day -

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and the vast majority via smartphones.

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Advertisers love it - last year, they spent almost $29

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billion placing ads on Facebook - a jump of 57% on 2015.

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That made Facebook profits of well over $10 billion

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reaching saturation point for the amount of advertising it can

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And it could give companies more opportunity

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to promote themselves on Instagram, the image sharing platform

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Instagram though is facing tough competition from rival Snapchat

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which is about to sell shares in New York in the biggest tech

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And it wasn't all celebration for Facebook after a jury

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ruled its virtual reality division Oculus had infringed another

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company's intellectual property and should pay them

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Our North America Technology reporter Dave Lee is at Facebook

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headquarters in Menlo Park, California.

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Nice to see you. It's the middle of the night there now. It is

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incredible, really, the news from Facebook in terms of the earnings

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but this Oculus rift ruling is a thorn in its side? It really is.

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Mark Zucker Berg had testified in that trial to convince the jury it

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was Facebook's oh and innovation. -- Zuckerberg. Originally the company

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which brought the lawsuit, they wanted $2 billion in damages. They

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got $500 million relating to the breach of a nondisclosure agreement

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so the got some damages. Both sides are calling that a victory for

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themselves. It is a bit of a destruction. Just a drop in the

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Ocean given the enormous amount of money Facebook is making. You

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mentioned in the queue, over $10 million profit -- $10 billion profit

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in the last year. That is because in this transition to mobile which

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originally Facebook were concerned about, they thought people would not

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click on ads on mobiles, it makes up 80% of their and revenue. They've

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made the transition and made it very well. That trick is to keep that

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growth. Facebook is cautious. It does not like to get investors hopes

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up. For the time being, Facebook is matching those expectations. Dave

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outside Facebook headquarters. Let's get more analysis with Matthew. The

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Oculus story is not fantastic. The year has been a good one but how

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long can they keep this up? Particularly impressive, the user

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growth but over the next year, some things to look out for in terms of

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short-term areas to improve Facebook, for example, time spent on

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the platform in the core markets as well as the average price paid by

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advertisers so Facebook needs to convince advertisers of the value.

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And it has to be about the value. There is only so much advertising

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that Facebook users will tolerate. It has to be less but advertisers

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pay more for that. Facebook is limiting the overall and load on its

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main Facebook and and that limit is being reached late this year. We

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have seen growth in American users given how far its reach is there

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already but also an increase in Asia. China has been a real problem

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for Facebook. It's not been able to penetrate China and has issues with

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the authorities. It wants a piece of that massive cake in terms of the

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number of users in mainland China. NACRO two was asked about China and

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he put it in an interesting way, saying they will consider going to

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China if they can come up with an agreement. That illustrates how it

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might be a trade-off between compromising the date of the users

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when it comes to Chinese authorities and their copperheads and

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surveillance. All right, thank you for joining us this morning. Very

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interesting. There is so much on the interest -- on the Internet so do

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take a look. Now - think supercar and bargain

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isn't the word that immediately But since the UK's vote

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to leave the European Union, wealthy petrol-heads from around

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the world have been heading here to do their shopping thanks

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to the slump in Sterling. Luxury car dealer Tom Jaconelli

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explains what it has meant I am Tom Jaconelli at Roman is

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international. We are a family run business. We sell McLaren, Ferrari

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are the very best of the supercars. What it is meant to European buyers

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is with the falling pound, they have managed to bag themselves a bargain.

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The price of one of these McLaren P1s used to cost $2.2 million in

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America but now they are buying it here for 20% less which is $1.9

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million to its $300,000 saving. A real increase in sales to

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foreigners. Cars that have gone to Hong Kong, Americo, you're up. We

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normally sell probably three or four cars overseas every year. We mainly

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sell to the UK but since Brexit, we have seen that threefold. We are

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selling ten or 11 cars since Brexit overseas which is unheard of for us.

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We didn't expect it. It is a bonus for us.

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Mexico has found itself under huge pressure since the election

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as US companies freeze their investment plans there.

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But there's been some good news - this press conference on Wednesday

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heralded a major car manufacturing deal with China

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Rico Hizon is following this story for us in Singapore.

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What's going on? It is indeed good news and it's green and gopher China

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Mexico Mexico Alliance in the automotive sector. You have JAC and

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giant motors teaming up to invest more than $200 million US in the

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plant to produce sports utility -- utility vehicles in central Mexico

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and they are expected to start at the end of March with the goal of

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making 10,000 units per year by 2021. The SUV will be sold in Mexico

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and Central America and South America. The announcement comes as

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US President Donald Trump has threatened to impose stiff export

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tariffs on companies that ship jobs to Mexico. We have seen Ford decide

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last month to cancel plans for a $1.6 billion factory in northern

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Mexico. Trump is also lashed out against General Motors and Toyota.

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Mexico is the world's fourth biggest car exporter and of course, China is

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one of the biggest markets for cars. We will see more alliances in

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manufacturing industries as well. Very end of -- interesting. Good to

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see you. Oil giant Royal Dutch Shell

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reports results later. Annual profits are expected to be

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more than double the previous year - Extreme weather and a pledge by OPEC

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to cut oil production has seen crude prices surge over

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the past few months. The dollar has weakened quite a bit

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-- quite a bit since the US Federal Reserve had delivered a press

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conference keeping rates on hold. No surprises from the Fed but a

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stronger yen is not helping Japan trade today. Everybody is wondering

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when the next move might be from the Fed and it will probably be March or

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June in terms of an interest rate rise in the States. I will see you

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soon. The number of students

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from the European Union applying to study at universities

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in the UK has fallen by 7% according to the admissions

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service UCAS.

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